An Post set to increase prices

AN POST, which last year had losses of €70.5 million, the worst in the history of the State, is to increase its prices.

From the end of this month the cost of a basic stamp will be increased from 41 cent to 48 cent as part of sweeping changes aimed at propping up the company.

The Commission for Communication Regulation, ComReg, has put final approval for the price increase on hold because discount schemes proposed by An Post, mainly for large business customers, will not be of benefit to small and medium-sized organisations.

ComReg says the new prices will be in place by the end of August if An Post provides a satisfactory re-application on discounts. The regulator also said the company needed to focus on improving efficiency and quality of its service. ComReg said an increase was unavoidable given the company's financial outlook.

An Post has begun a fundamental review of its business following the disclosure last week of a €70.5m loss.

The firm’s new chief executive, Mr Donal Curtin, said the review would focus on costs and signalled at least 1,100 job cuts were required before 2005.

Further costcutting is also likely, given a fall off in business activity this year, said Mr Curtin, who did not rule out selling off non-core units within An Post.

An Post would seek to concentrate on its core business following its review, said Mr Curtin. He only took up the job at An Post less than one month ago following the retirement of John Hynes. An Post, he said, owns several non-core subsidiaries that could be sold off, including its technology units Post.Trust and PMI.

It also operates a joint-venture operation to run the prizebond scheme.